The Supplementary Card Spending Program* from American Express

Terms: Supplementary Card Spending Program

The supplementary card spending program (the “program”) helps you control and manage the spending of your supplementary cardmember(s) during each billing period. By enrolling in this program, you (the basic cardmember) agree to the terms contained herein.

1. If you are a consumer cardmember, you are liable for all charges made by supplementary cardmembers, even if they exceed the spending amount established with this program. If you are a small business cardmember, you and the company are jointly and severally liable for all charges made by supplementary cardmembers, even if they exceed the spending amount established with this program.
   
   
2. You may select a spending amount up to which a supplementary cardmember will be able to make charges to their supplementary card during each billing period. This spending amount is not affected by payments or credits made by or on behalf of the supplementary cardmember during a billing period. The spending amount will automatically reset at the beginning of each new billing period. It is your responsibility to ensure each supplementary cardmember is made aware of any spending amount that applies to their account as well as the date on which the spending amount resets each month. You can select a different spending amount for each supplementary cardmember.


3. Not all charges made to a supplementary cardmember’s account will be included in the spending amount, and these exceptions are detailed at paragraphs 4 and 5. This means that certain charges may be approved even if a supplementary cardmember has exceeded his card’s spending amount for that billing period. This means that the program does not provide for or guarantee a fixed limit or cap on all charges made by a supplementary cardmember.
   
   
4. A supplementary cardmember could exceed the spending amount if a charge from any of the following categories is made to the supplementary card :
   • fees (e.g. card annual fees)
   • cash advances using the card
   • transactions treated as cash, which may include purchases of money orders and wire transfers (some exceptions may apply)
   • balance transfers
   • purchases of travellers cheques (some exceptions may apply)
   • purchases of foreign currency (e.g. buying U.S. Dollars or Mexican Pesos at your bank or at a foreign exchange centre)



By way of an example, assume the following:
➣ $1000 spending amount previously set on the supplementary card; and
➣ total charges on the supplementary card so far that billing period: $950




A) A $100 purchase of foreign currency will be approved even though it will cause the total charges to exceed the spending amount and reach $1050. This is because foreign currency purchases are listed at paragraph 4 and do not count toward the spending amount. If the supplementary cardmember later (during the same billing period) attempts to make a regular retail purchase in the amount of $75, it will be declined as the total charges on the card will already be at $1050 for that billing period ($950 + $100 = $1050).




B) However, if the supplementary cardmember attempts to purchase an additional $125 in foreign currency later that same day, that charge will be approved (because foreign currency purchases don’t count toward the spending amount) and the total charges on the supplementary card will increase to $1175 for that billing period ($950 + $100 + $125 = $1175).



5. The categories of charges listed below are subject to (and count toward) the spending amount only once they are posted to the account. However, if these charges result in a supplementary cardmember’s total charges in a billing period exceeding the spending amount, the charges (i) will not be declined solely on that basis; and (ii) could cause the spending amount to be exceeded..
   
   
   • charges where there is a delay in our receiving or processing the charge, such as manually submitted (paper) charge records and deferred electronic submission of the charge (where there are connectivity issues, such as in-flight purchases)
   
   
   • charges at merchants where we have arrangements with them which may affect our ability to recognize the charge as qualifying under the program. The majority of these will be low value contactless or low value chip & PIN charges.



By way of an example, assume the following:
➣ $1000 spending amount previously set on the supplementary card; and
➣ total charges on the supplementary card so far that billing period: $850




A) A $75 charge that was made last month but did not post to the account until the current billing period will be approved and will cause the total charges on the card this billing period to increase to $925 ($850 + $75= $925).




B) If the supplementary cardmember later (during the same billing period) tries to make a purchase for $100 at a retail store, that charge will be declined as it will exceed the spending amount of $1000 ($850 + $75 + $100 = $1025).




C) However, if the supplementary cardmember makes the $100 retail purchase first and the delayed $75 charge from the prior month is only posted to the card afterwards, both charges will be approved and the card will have total charges of $1025 this billing period ($850 + $100 +$75 = $1025).




The difference between Examples B and C is this: The $100 retail charge will only be approved if it doesn’t cause the total charges that billing period to exceed the spending amount. The $75 delayed charge, however, may be approved whether or not it causes the spending amount to be exceeded.



6. The spending amount you select for a supplementary cardmember when you enroll in the program will apply to charges made by that supplementary cardmember on or after the date that we assign the amount on our systems. This means that when you initially enroll a supplementary cardmember in the program, charges made by that supplementary cardmember(s) before that date will not be included in the set spending amount for the current billing period. For example, if you have a supplementary cardmember who has already made $750 in charges in the current billing period and you select a spending amount of $2000 per month, that $750 will not be included as part of the $2000. This means the supplementary cardmember will have the ability to charge up to $2750 for that first billing period and then $2000 for each billing period thereafter.


7. You may change the set spending amount you have previously selected at any time. If the spending amount is increased, the supplementary cardmember’s ability to charge will be increased once we are able to process the change. Unlike the initial enrollment of a supplementary cardmember, charges made by that supplementary cardmember before that date will be included in the spending amount for the current billing period. For example, if a supplementary cardmember has a $1000 spending amount in place and has already made $750 in charges so far this billing period, if you increase the spending amount to $2000 per month, that $750 balance will be included as part of the $2000 spending amount. This means that the supplementary cardmember will only be able to charge $1250 for the remainder of the current billing period and then $2000 for each billing period thereafter.


8. If you wish to reduce an existing set spending amount to one that is lower than the supplementary cardmember’s total charges so far that billing period, that supplementary cardmember’s card may not be used to make further charges until the next billing period.


9. As with all spending amounts, the program exceptions listed at paragraphs 4 and 5 apply to the examples in the above paragraphs.


10. Your enrollment into this program does not guarantee that the supplementary cardmember(s) will be able to make charges up to the amount you specify when you enroll. Approval for all charges remains subject to our usual business and risk controls.


11. If you decide you no longer wish to manage your supplementary cardmember(s) spend by using this program and notify us of this, your supplementary cardmember(s) will be able to charge without restriction, subject to our usual business and risk controls.


12. You will receive confirmation from us in writing and/or by email after you have enrolled into the program and selected the spending amount or changed it. It is your responsibility to check this confirmation.


13. It is also your responsibility to ensure that each supplementary cardmember is aware of the amount you have selected and of any changes you make under this program. You agree that we may also confirm the set spending amount to the supplementary cardmember if they contact us.


14. Upon enrollment, these terms and conditions form part of your cardmember agreement.

TM ®: Used by Amex Bank of Canada under license from American Express.